Should I buy my home or continue renting? This age-old question has come under a lot of scrutiny lately given the current housing and financial markets. Subsequently, there are compelling arguments in support of both renting or buying and many factors should be considered before making this decision. For instance, know how long you plan to live in the same home, determine whether you can build equity if you buy, and understand the costs associated with regular maintenance on a home you want to purchase.
After you've calculated the financial risks and benefits, the final decision to buy or rent should be based on more than profit alone. Here are 3 positive benefits when you buy a home instead of renting one.
Benefits of Home Ownership
1. Peace of Mind
When you own a home, you control everything about it. You decide how it looks and how long you’ll stay. There’s no need to worry about getting an eviction notice if your landlord sells the property. You can change the home, decorate, and make it your own. In other words, you’re in charge of your own destiny instead of relying on your landlord to make decisions for you.
2. Building Equity
While paying your mortgage might feel similar to paying rent, it’s completely different. Every month, part of your mortgage payment means more of your home is becoming your financial asset. As a result, you build equity, increase your wealth and your creditworthiness.
3. Predictable Monthly Payments
Rent is unpredictable. As a consequence, it can increase without your control. On the other hand, a fixed-rate mortgage means more predictable monthly payments. While there may be instances (like improved home value, property taxes, and insurance rates) which could affect your payment, these don't happen as often as fluctuations in rent. In fact, fixed monthly payments make it easier to budget and save money.
Buying a home will be one of your biggest investments. Do your homework. Be prepared. Above all, hire a professional real estate agent who knows the local market. As a result, the entire process will go smoothly and you will end up purchasing the home of your dreams.
If you decide to buy a home, a great place to begin is by attending a first time home buyer’s event. As a result, you will understand exactly what matters and what doesn't. In particular, you can learn ways to save, what is expected for a down payment, bank requirements, basic terms, and better understand ongoing costs.
Are you planning to put your home on the market? If so, this free guide is a great place to start. It has tips and checklists for how to get your home ready to sell in order to optimize your outcome.